AZ Real Estate Vocabulary Chap 7-16 by ROC

Federal law dealing with real estate closings that provides guidelines for the disclosure of settlement costs.
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The annulment of a contract by mutual consent of the parties. (to rescind)
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The ongoing purpose of collecting payments, keeping records, and handling defaults for loans.
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Issued by the CFPB to create standardized, consumer-friendly disclosure documents.
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Describes a loan, including the down payment, terms, monthly payments. Required for TILA.
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Federal law that requires disclosure of the terms of credit by a creditor to a prospective borrower.
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A guaranteed loan made to eligible veterans for the purchase or construction of a home.
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A wide-ranging federal civil rights law, signed in 1990, that prohibits, under certain circumstances, discrimination based on disability.
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An illegal act whereby owners are encouraged to sell their properties because minorities are moving into their neighborhood.
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Fundamental rights guaranteed to all persons by the law.
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A physical or mental impairment that substantially limits or curtails one or more major life activities.
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Treating people unequally because of their race, religion, sex, national origin, age, or some other characteristic of a protected class, in violation of civil rights laws.
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When a law that isn't discriminatory on the face of it has a greater impact on a minority group than it has on other groups.
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An intentional decision to treat some people differently than others in a similar situation.
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A law that prohibits discrimination in all facets of the home-buying process on the basis of race, color, national origin, religion, sex, familial status, or disability.
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A protected group under the Federal Fair Housing Act, making it illegal to discriminate against a person because he is the parent or guardian of a child less than 18 years of age.
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A court order requiring the defendant to do, or refrain from doing, a particular act.
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A group of people with a common characteristic who are legally protected from discrimination on the basis of that characteristic.
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An establishment that is intended to be avilable to everyone, either as a place of business or commerce.
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Changes to rules, policies, practices, or services as necessary for disabled persons to use the housing on an equal basis with non-disabled persons.
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Physical changes to a dwelling or common use area, at the tenant's expense, that would permit full use of housing; usually requiring the tenant to restore the
* property to its original condition upon moving.
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The illegal process of a lender denying loans in certain areas of a community because of race, color, creed, etc.
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Channeling prospective buyers or tenants to particular neighborhoods based on race, religion, national origin, ancestry, or other legally protected class.
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The physical removal of a tenant from a leased property with the tenant relieved of any further responsibility to pay rent.
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A document for owners of mobile homes certifying that the home is immobilized,
i.e., anchored to real property.
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The ownership of the interior of a condo; a property that is above the base elevation of the land; multi level building.
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Property where co-owner has a separate interest in the space inside an individual unit, plus an undivided interest in common areas.
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A landlord's act makes the property unfit for its intended use, to such an extent the tenant is forced to move out.
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When a tenant is actually paying in rent, as stated in the terms of the lease.
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Property ownership where residents purchase stock shares in a corporation and have a proprietary lease.
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The resulting difference when the economic rent exceeds the contract rent, to the disadvantage of the Lessor and advantage to the lessee. 9

The right of the landlord to sieze a tenant's belongings for payments in arrears. Not permitted for residential property.
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A structure that is used as a residence or sleeping place by someone who maintains a household.
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When the property could rent for in the open market if currently vacant and available.
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A protected group under FFHA making it illegal to discrminate because he is the parent or guardian of a child less than 18 years of age.
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The difference when the contract rent exceeds the economic rent, to the advantage of the lessor and disadvantage to the lessee.
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The owner of a property who leases it; the lessor.
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A written contract between a lessor and lessee granting possession, usually for a specific time period.
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A tenant.
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A landlord.
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A parcel of land with four or more rental spaces for manufactured or mobile homes.
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Leasing real property of others for consideration pursuant to a written contract.
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A written agreement that governs the relationship between the property owner and the property manager.
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A person hired by a real property owner to administer, market, and maintain property, especially rental property.
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An exclusive long term lease that conveys a leasehold interest to an owner of shares in a cooperative.
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A right held by a property owner to re-enter and regain possession of leased property at the term of the lease.
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Money a tenant gives a landlord at the beginning of tenancy to ensure that the tenant will comply with the terms of the lease.
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The person who has the right of possession under a lease.
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The ownership of a single unit by multiple persons for fixed or floating increments of time over the course of a year.
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Property where co-owner has a fee simple interest in an individual unit and the ground beneath it, plus an undivided interest in common areas.
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A court order that may be filed if a tenant remains in a property for more than five days after a judgement for eviction is signed.
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43560 square feet

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Parcels of land that are 160 acres or larger.

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Rules that are principles founded on customs, decisions, and opinions fo the court.

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Person/firm that improves raw land for the purpose of building structures or subdividing parcels for sale or construction.
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The way to exit a property.

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An intentional perversion of the truth for the purpose of inducing another, to part with something of value.

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The dimension across the access side of a parcel of land.

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A parcel on which a structure exists or will exist within two years from the date of the contract of sale.

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The way to enter a property.

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Land that is divided into five or fewer parcels.

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A misstatement of a material fact.

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A disclosure document that a developer must give to buyers before they sign a contract.

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Exaggerated or superlative comments or opinions.

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The permanent cancellation of a real estate license.

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Laws that are passed by a legislative body.

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Land that is divided into six or more lots of less than 36 acres.

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A person or entity that subdivides land.

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The temporary withdrawal of a real estate agent's license.

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A parcel or lot upon which there is no structure nor any contract to construct one within two years.

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Land that is divided into six or more lots of at least 36 acres, yet less than 160 acres.

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One who represents a principal (Client).

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The individual who has a power of attorney.
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The person who hires the agent and for whom the agent works.
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Mixing personal money with trust funds.
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Misappropriating trust monies.
The illegal use of funds being held in a trust.
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Often considered a third party in the transaction.
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An agent who represents both the buyer and seller in the same transaction.
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Care a reasonable person should take to investigate a property before entering into a transaction.
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A relationship of trust and confidence.
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An agent authorized to handle any and all of the principal's affairs in a specified job or business area.
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A defect that is not visible or apparent.
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Any property conditions that might affect the consideration paid by the buyer/customer.
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Information that would be relevant in a buying or selling decision.
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Document that must be obtained to give unlimited power.
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The person who gives authority to the agent or attorney thereby creating a fiduciary relationship.
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One who is authorized to perform one specific transaction for a client.
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Assuming the legal rights of a person for whom a debt has been paid.
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One who acts on behalf of the client in all matters and situations.
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Items of additional material that are attached to an existing contract to explain, modify, or revoke elements of the contract.
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A formal revision to a contract to add, remove, or update elements found in the contract.
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The transfer of one person's interests under contract to another.
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Standardized language used in contracts for the sake of efficiency and completeness.
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An unexcused failure to perform according to the terms of a contract.
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Something of value given to another as compensation for entering into a contract.
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Provision in a contract that makes a party's rights depend on the occurrence {or nonoccurrence) of a particular event.
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An agreement that the law will enforce.
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Using unlawful force or intimidation against a person to enter into a contract.
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Money given by a buyer upon signing a contract, showing the buyer's intention to carry out the terms of the contract.

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A legally binding promise to refrain from doing a particular act.
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A right or a share in something; a charge a borrower pays to lender for the use of lender's money.
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A concept preventing the assertion of a right or claim because of an undue delay.
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A sum of money the parties to a contract agree in advance will serve as compensation in the event of a contract breach.
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The release of liability of the original party to an agreement and the substitution of a subsequent party with approval.
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A person who receives an offer or to whom an offer is made.
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A person who makes an offer.
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The buyer who has a right to purchase or lease property under the terms of an option agreement, but is not obligated to do so.
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Someone obligated to sell or lease property under the terms of an option agreement if the optionee exercises the option.
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The annulment of a contract by mutual consent of the parties.
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A contract in which both parties expressly enter into mutual agreements or engagements.
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An advertisement that does not include the broker's business name.
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Standardized language used in contracts for the sake of efficiency and completeness.
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Contract clause that entitles a listing broker to a commission if the property sells in a specified timeframe and the broker or an affiliated licensee introduced the buyer to the property during the listing period.
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Compensation paid to a broker for services in a real estate transaction; usually a percentage of the sales price.
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A way to determine an appropriate list price by comparing the property to similar ones that sold, are for sale, or did not sell.
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Gives one broker the right to sell the property, allowing the owner to sell it on his own without owing commission.
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Entitles the broker to collect a sales commission regardless of who sells the property, including a FSBO.
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An agreement between a broker and a seller.
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An arrangement whereby brokers agree to share listings, show properties and share commissions.
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A listing agreement in which the seller sets the amount he will accept for the property, allowing the broker to keep the excess.
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A traditional marketing strategy to showcase a listed property.
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A non-exclusive listing; the broker who is the procuring cause of the sale is entitled to a commission.
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The effort that brings about the desired result; an unbroken chain of events that results in the sale of property.
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A contract that is legally binding only on the one party who made a promise.
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Value is created by the expectation of future benefits, such as profit on resale; foundation of income approach to appraisal.
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An opinion or estimate of value of real property as of a certain date, as supported by objective evidence and data.
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An increase in the value of property due to a positive improvement.
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A transaction that occurred under typical conditions in the marketplace; each party acting in their own best interests.
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The combining of two or more parcels of land into one larger parcel, usually to increase the usefulness of the land.
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A method of determining the present value of income property by discounting the annual net income by a community used rate of return; IRV formula.
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A rate of return stated as a percent, used to derive a value opinion from the anticipated net operating income a property could generate.
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Economic principle that says a home usually achieves maximum value when surrounded by homes similar in style and function.
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Theory that a specific item or feature of a property is worth only what it actually contributes in value to a parcel of real estate.
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The dollars needed to develop, produce, or build something.
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A method of appraisal based on reproduction cost of an improvement, minus any depreciation, plus site value.
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The decrease in value to real property improvements caused by deterioration or obsolescence.
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The time during which a building can be used for its intended purpose, or generate more income than is paid out.14

A loss of value due to change in external events or factors affecting a piece of real property; cannot be cured by the owner.
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The age the structure appears to be based on physical wear and tear, functional design, and external factors.
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Potential gross income less vacancy and collection losses.
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A federal law that imposes qualification criteria for appraisers performing appriasals. In connection with
Fed regulated loans
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A conversion factor derived from the sales price of a comparable rental property divided by its gross monthly rent.
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The most profitable, legally permitted, feasible, and physically possible use of a piece of property.
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Appraisal method that estimates value of real estate by analyzing revenue the property generates or could generate.
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Finding the net operating income, the rate, or value of an investment property.
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The contract price for which a property actually sold.
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The most probable price a property should bring on an open and competitive market through an arm's length transaction.
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The assemblage of two or more parcels of land into one larger parcel, resulting in an increased value over the combined value of individual parcels.
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The amount a ready, willing, and able buyer agrees to pay for a property and a seller agrees to accept.
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A principle that the value of a less expensive home is positively affected when surrounded by more expensive homes.
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The final step in the appraisal process that involves analyzing the values from different approaches to arrive at a final value.
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A principle that the value of a more expensive home is negatively affected when surrounded by less expensive homes.
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The method of determining the value of an improvement under the cost approach in an appraisal by building the structure using current building materials.
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The method of determining the value of an improvement under the cost approach in an appraisal by building an exact replica of a structure.
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Appraisal approach that estimates the value of real property by analyzing comparable properties recently sold.
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The measurement in feet of an area directly under some type of covering.
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The measurement in feet of the above grade interior area of a structure that is liveable with proper access.
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Economic theory that says an informed buyer will not pay more for a property than a comparable property.
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Principle that says when supply exceeds demand, prices will fall and when demand exceeds supply, prices will rise.
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Professional appraisal standards developed by the Appraisal Foundation.
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Refers to parcels that share a boundary.
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43,560 square feet.
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A primary line running east to west that establishes a north and south boundary in the rectangular survey system.
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Column lots that form the structural support of air lot.
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Refers to parcels that touch at any point
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A point, line, or surface from which elevations are measured.
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A parcel of land described by the number of miles wide and high.
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The distance around the outside of a parcel.
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The starting and ending point for a metes and bounds legal description.
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In the rectangular survey system, a six-mile strip of land running north/south.
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North-south lines that run parallel to principal meridians at six-mile intervals, establishing east-west boundaries.
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An area of land in the rectangular survey system that is a one mile by one mile square with 640 acres.
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The area of a parcel of land (length x width) in miles.
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In the rectangular survey system, a six-mile strip of land running east/west.
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Square divisions of land, 6 miles by 6 miles in the rectangular survey system.
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A sworn statement under oath that indicates the purchase price paid by the buyer in a transaction.
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Owing payment on things for which one has the use of but has not yet paid for, such as property taxes.
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An extension of a title search to verify that no liens have been filed against a property between the time of original search and the recording of the deed/mortgage.
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365 days per year.
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A settlement statement prepared by the lender or closing agent itemizing all expenses and costs paid by the buyer and seller.
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Notice given by the publication in a newspaper, recording, or other method.
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A sum of money to be received.
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Any sum of money owed; a charge on a closing statement.
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A written instrument transferring the grantor's ownership of, or interest, in real property.
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A system where things of value are held on behalf of parties to a transaction by a disinterested third party until specified conditions have all been met.
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A neutral clearinghouse through which title to real property is closed and/or
escrow funds are held in trust.
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The person charged with coordinating the activities and documentation necessary for completing a real estate transaction.
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Federal law that imposes income tax on foreign persons selling or otherwise disposing of their interest in real property.
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A tax form indicating the seller's proceeds from the sale or transfer of real estate that settlement officer submits to IRS.
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Fees or other compensation given for services not performed.
Prohibited by RESPA
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The legal seizure of an individuals property to satisfy an IRS tax debt.
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Title to real property that is reasonably free of defects and encumbrances.
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The allocation of expenses, real estate taxes, or rents between buyer and seller in proportion to their actual use of an item.
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Federal law dealing with real estate closings that provides guidelines for the disclosure of settlement costs.
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Any service provided in connection with a prospective or actual settlement of a real estate transaction.
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360 days per year; 30 days per month
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The right to or ownership of land.
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A company that examines and insures title claims for real estate purposes through a thorough examination of property records.
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Insurance that indemnifies the policyholder against losses resulting from undiscovered title defects and encumbrances.
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A report issued by a title company disclosing the condition of the title to a specific piece of property.
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